I-T department carries out search operations at eight firms connected to Nitin Gadkari

DELHI/MUMBAI: Officials of the Income-tax department on Tuesday carried out search operations at the premises of eight "intermediate companies" allegedly connected to BJP President Nitin Gadkari.

A senior Income-tax official in Mumbai said the search operation was based on the information gathered by the Nagpur division of the Income-tax department which has been probing the Purti group of companies run by Mr Gadkari. He said "Officials in Nagpur had requested us to assist them in the probe being carried out on Mr Gadkari". About 20 officials have been deployed for the operation.

The Income-tax department, Nagpur has been probing the source of the funds of the shell companies that had invested in the Purti group. The I-T department swung into action last October after a series of allegations suggesting that Mr Gadkari's company received money through the shell companies in return for favors extended to a private company while he was a minister in Maharashtra during the 1996-99 period.

The Nagpur division of the Income-Tax department had begun the probe by launching ""open inquiries"" at the premises of companies which had invested in Purti Sugar and Power run by Mr Gadkari. According to I-T officials most of the directors of these companies were people with small means such as security guards and casual workers.